In Preparing Their Estimates of the Stimulus Package's Effect on GDP,Obama

Multiple Choice

In preparing their estimates of the stimulus package's effect on GDP,Obama administration economists estimated a government purchases multiplier of 1.57.Economist Robert Barro argues that during wartime,the government purchases multiplier would be ________ the administration's estimate,and economists Lawrence Christiano,Martin Eichenbaum,and Sergio Rebelo argued that when short-term interest rates are near zero,the multiplier would be ________ the administration's estimate.

A) higher than;lower than
B) lower than;higher than
C) higher than;equal to
D) equal to;lower than